Ammon News - U.S. President Donald Trump's decision to drop his threat to impose 50% tariffs on European Union imports from next month gave 'new impetus' to trade talks, the EU said on Monday, as global stock markets climbed and the euro rallied.

Back-tracking on the new tariffs he announced on Friday, Trump on Sunday restored a July 9 deadline to allow for talks between Washington and the 27-nation bloc to produce a deal after what he said was "a very nice call" with EU Commission chief Ursula von der Leyen.

The pan-European stocks index recovered to where it was trading before Friday's surprise tariff announcement and the euro rose to its highest since late April. Gold prices fell as Trump's latest move reduced demand for the safe-haven asset.

"They agreed both to fast track the trade negotiations and to stay in close contact," a European Commission spokesperson said of Trump and von der Leyen's conversation.

US and EU trade representatives were due to hold talks later on Monday.

"There's now also a new impetus for the negotiations, and we will take it from there," the spokesperson said.

The U.S. president's about-turn reminded policymakers and investors how quickly his trade policy could change, however, and it was unclear how the EU would square its push for a mutually beneficial trade deal with U.S. calls for steep concessions. Reuters